Reported 12 months ago
Following the Federal Reserve's dovish stance on July 3, 2024, speculations of a rate cut in September increased, leading to a surge in financial stocks. Insurance-linked financial conglomerates, especially those with substantial bond holdings, soared, with the financial stock index rising by 57.24 points to 2,079.95 points, marking a 2.82% increase and outperforming the market's 1.28% rise. Cathay Financial Holdings surged by 5.67% on the same day, increasing its market value to NT$994.65 billion, close to hitting the one trillion mark. Additionally, multiple insurance-related stocks rose by over 2% on this day. With the positive outlook on Taiwan's economy benefiting from the AI trend and the upcoming export season in the second half of the year, the banking sector's loan growth, as well as the expected profit boost in the insurance industry due to a potential U.S. rate cut, are anticipated to keep the financial sector robust.
Source: YAHOO